Pension Schemes Act 2021

• (3) A triggering event occurs on the date specified in relation to the event in the third column of the triggering events table.

• (4) For the purposes of this Part “the triggering events table” is—

Item	Triggering event	Date event occurs
1.	The Pensions Regulator issues a warning notice under the standard procedure in respect of a decision to withdraw the scheme's authorisation.	The date on which the notice is issued.
2.	The Pensions Regulator issues a determination notice under the special procedure in respect of a decision to withdraw the scheme's authorisation.	The date on which the notice is issued.
3.	The Pensions Regulator gives a notification under section 58(3) (scheme not authorised).	The date on which the notification is given.
4.	An insolvency event occurs in relation to an employer or a relevant former employer.	The date on which the insolvency event occurs.
5.	An employer or a relevant former employer becomes unlikely to continue as a going concern, where the employer or relevant former employer is a person or body of a kind that meets the requirements prescribed under Article 113(1)(b) of the Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1)).	The earlier of—the date on which the employer or relevant former employer notifies the Pensions Regulator of that fact, andthe date on which the trustees become aware of that fact.
6.	A person who has power to do so under the provisions of the scheme decides that the scheme should be wound up.	The date of the decision.
7.	An event occurs that is required or permitted by the provisions of the scheme to result in the winding up of the scheme.	The date on which the event occurs.
8.	A person who has power to do so under the provisions of the scheme decides that the scheme should become a closed scheme.	The date of the decision.
9.	An event occurs that is required or permitted by the provisions of the scheme to result in the scheme becoming a closed scheme.	The date on which the event occurs.

• (5) In this Part—

• “item 1 triggering event” means an event falling within item 1 of the triggering events table (and similar references using other item numbers are to be read accordingly);

• “relevant former employer”, in relation to a collective money purchase scheme, means a person who has ceased to be an employer in relation to the scheme but who—is subject to an actual or contingent obligation to contribute financially to the scheme, whether by making contributions towards the costs of running the scheme or otherwise, orhas power to take a decision about the operation of the scheme, either alone or with other persons who are or have been employers in relation to the scheme.

• (6) In this section “closed”, in relation to a collective money purchase scheme, means closed to new contributions or new members (or both).

Triggering event periods

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• (1) For the purposes of this Part, a “triggering event period” for a collective money purchase scheme is a period—

• (a) starting with the date on which a triggering event occurs in relation to the scheme, and

• (b) ending with the earliest of the dates given by subsection (2).

• (2) The dates are—

• (a) the date on which the trustees receive from the Pensions Regulator—

• (i) notification under section 88(4) that the Regulator is satisfied that the triggering event has been resolved, or

• (ii) notification under section 89(4) that the Regulator is satisfied that preparations for conversion to a closed scheme are complete and that the conversion will resolve the relevant events;

• (b) the date on which the scheme is wound up;

• (c) in the case of an item 1 or 2 triggering event (notice in respect of a decision to withdraw authorisation), the date on which it becomes clear that authorisation is not to be withdrawn.

• (3) For the purposes of subsection (2)(c), it becomes clear that authorisation is not to be withdrawn—

• (a) in the circumstances set out in relation to the event in the second column of the table in subsection (4), and

• (b) on the date given in relation to those circumstances in the third column of that table.

• (4) The table is—

Triggering event	Circumstances	Date
Item 1 (issue of warning notice under the standard procedure)	1The Pensions Regulator makes a determination not to withdraw the scheme's authorisation, and2there is no referral of the determination to the Tribunal within the time period allowed for doing so.	The date of the Pensions Regulator's determination.
Item 2 (issue of determination notice under the special procedure)	1On a review under Article 94 of the Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1)), the Pensions Regulator makes a determination that the scheme's authorisation should not be withdrawn, and2there is no referral of the determination to the Tribunal within the time period allowed for doing so.	The date of the Pensions Regulator's determination.
Item 1 or 2	1On a referral to the Tribunal of a determination by the Pensions Regulator, the Tribunal makes a determination the effect of which is that the scheme's authorisation should not be withdrawn, and2either—ano appeal is brought against the Tribunal's determination within the time period allowed for doing so, orban appeal is brought within that time period but is later withdrawn.	The date of the Tribunal's determination.
Item 1 or 2	The effect of an appeal against a determination by the Tribunal is that the scheme's authorisation should not be withdrawn.	The date on which the appeal is finally disposed of.

• (5) In this section “the Tribunal” has the meaning given in—

• (a) Article 91(7) of the Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1)), in a case where the standard procedure applies;

• (b) Article 94(13) of that Order, in a case where the special procedure applies.

Notification of triggering events

84

• (1) If a triggering event listed in the first column of the table in subsection (2) occurs in relation to a collective money purchase scheme, each person specified in relation to the event in the second column of that table must (subject to subsections (12) and (13)) notify the Pensions Regulator of the occurrence of the event.

• (2) The table is—

Event	Specified person
Item 4 triggering event (an insolvency event occurs in relation to an employer or a relevant former employer)	The employer or relevant former employer.
Item 4 triggering event (an insolvency event occurs in relation to an employer or a relevant former employer)	A trustee who is aware of the event.
Item 5 triggering event (an employer or a relevant former employer becomes unlikely to continue as a going concern, where the employer or relevant former employer is a person or body of a kind that meets the requirements prescribed under Article 113(1)(b) of the )	The employer or relevant former employer.
Item 5 triggering event (an employer or a relevant former employer becomes unlikely to continue as a going concern, where the employer or relevant former employer is a person or body of a kind that meets the requirements prescribed under Article 113(1)(b) of the )	A trustee who is aware of the event.
Item 6 triggering event (a person decides that the scheme should be wound up)	The person who made the decision.
Item 6 triggering event (a person decides that the scheme should be wound up)	A trustee who is aware of the event (if not the person who made the decision).
Item 6 triggering event (a person decides that the scheme should be wound up)	An employer who is aware of the event (if not the person who made the decision).
Item 7 triggering event (an event occurs that is required or permitted by the provisions of the scheme to result in the winding up of the scheme)	A trustee who is aware of the event.
Item 7 triggering event (an event occurs that is required or permitted by the provisions of the scheme to result in the winding up of the scheme)	An employer who is aware of the event.
Item 8 triggering event (a person decides that the scheme should become a closed scheme)	The person who made the decision.
Item 8 triggering event (a person decides that the scheme should become a closed scheme)	A trustee who is aware of the event (if not the person who made the decision).
Item 8 triggering event (a person decides that the scheme should become a closed scheme)	An employer who is aware of the event (if not the person who made the decision).
Item 9 triggering event (an event occurs that is required or permitted by the provisions of the scheme to result in the scheme becoming a closed scheme)	A trustee who is aware of the event.
Item 9 triggering event (an event occurs that is required or permitted by the provisions of the scheme to result in the scheme becoming a closed scheme)	An employer who is aware of the event.

• (3) If a triggering event occurs in relation to a collective money purchase scheme, a trustee who is aware of the event must (subject to subsections (5), (6), (12) and (13)) give the required notification to each employer or relevant former employer.

• (4) In this section “the required notification”, in relation to a triggering event, means notification of—

• (a) the occurrence of the event, and

• (b) such other matters relating to the event as may be specified in regulations made by the Department.

• (5) In the case of an item 4 or 5 triggering event, subsection (4)(a) does not apply as regards notification of the employer or relevant former employer in respect of whom the event occurs.

• (6) In the case of an item 6 or 8 triggering event, subsection (4)(a) does not apply as regards notification of the person who decided that the scheme—

• (a) should be wound up, or

• (b) (as the case may be) should become a closed scheme.

• (7) If an item 4 or 5 triggering event occurs in relation to a collective money purchase scheme, each employer or relevant former employer in respect of whom the event occurs must (subject to subsections (12) and (13)) give the required notification to the trustees.

• (8) If an item 6 or 8 triggering event occurs in relation to a collective money purchase scheme, the person who decided that the scheme—

• (a) should be wound up, or

• (b) (as the case may be) should become a closed scheme,

must (if that person is not the trustees, and subject to subsections (12) and (13)) give the required notification to the trustees.

• (9) If an item 7 or 9 triggering event occurs in relation to a collective money purchase scheme, each employer or relevant former employer who is aware of the event must (subject to subsections (12) and (13)) give the required notification to the trustees.

• (10) A notification under this section must be given before the end of the period specified in regulations made by the Department.

• (11) Except as provided by subsections (12) and (13), the disclosure of information under this section does not breach—

• (a) any obligation of confidence owed by the person making the disclosure, or

• (b) any other restriction on the disclosure of information (however imposed).

• (12) This section does not require a disclosure of information if the disclosure would contravene the data protection legislation (but in determining whether a disclosure of information would do so, take into account the duty imposed by this section).

• (13) A person is not required by this section to disclose anything in respect of which a claim to legal professional privilege could be maintained in legal proceedings.

• (14) Article 10 of the Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22)) (civil penalties) applies to a person who fails to comply with a requirement imposed by this section.

• (15) Regulations under this section are subject to negative resolution.

Continuity options

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• (1) If a triggering event occurs in relation to a collective money purchase scheme, the trustees must pursue one of the continuity options.

• (2) The continuity options are—

• (a) continuity option 1 (discharge of liabilities and winding up) (see section 87);

• (b) continuity option 2 (resolving triggering event) (see section 88);

• (c) continuity option 3 (conversion to closed scheme) (see section 89).

• (3) The trustees must pursue continuity option 1—

• (a) if the triggering event is an item 1 or 2 triggering event and the decision to withdraw authorisation has become final (see section 86), or

• (b) if the triggering event is an item 3 triggering event.

• (4) In those cases, the trustees must pursue continuity option 1 even if—

• (a) the item 1, 2 or 3 triggering event occurs within the triggering event period of an earlier triggering event, and

• (b) the trustees have already decided to pursue continuity option 2 or 3 in respect of the earlier triggering event.

• (5) The trustees may pursue continuity option 3 only if (or to the extent that) the provisions of the scheme allow them to do so.

Subject to that, this section overrides any provision of the collective money purchase scheme to the extent that there is a conflict.

• (6) Article 10 of the Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22)) (civil penalties) applies to a person who fails to comply with a requirement imposed by this section.

When a decision to withdraw authorisation becomes final

86

• (1) For the purposes of this Part, in relation to an item 1 or 2 triggering event, a decision to withdraw authorisation becomes final—

• (a) in the circumstances set out in relation to the event in the second column of the table in subsection (2), and

• (b) on the date given in relation to those circumstances in the third column of that table.

• (2) The table is—

Triggering event	Circumstances	Date
Item 1 (issue of warning notice under the standard procedure)	1The Pensions Regulator makes a determination to withdraw the scheme's authorisation, and2there is no referral of the determination to the Tribunal within the time period allowed for doing so.	The date of the Pensions Regulator's determination.
Item 2 (issue of determination notice under the special procedure)	1On a review under Article 94 of the Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1)), the Pensions Regulator makes a determination that the scheme's authorisation should be withdrawn, and2there is no referral of the determination to the Tribunal within the time period allowed for doing so.	The date of the Pensions Regulator's determination.
Item 1 or 2	1On a referral to the Tribunal of a determination by the Pensions Regulator, the Tribunal makes a determination the effect of which is that the scheme's authorisation should be withdrawn, and2either—ano appeal is brought against the Tribunal's determination within the time period allowed for doing so, orban appeal is brought within that time period but is later withdrawn.	The date of the Tribunal's determination.
Item 1 or 2	The effect of an appeal against a determination by the Tribunal is that the scheme's authorisation should be withdrawn.	The date on which the appeal is finally disposed of.

• (3) In this section “the Tribunal” has the meaning given in—

• (a) Article 91(7) of the Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1)), in a case where the standard procedure applies;

• (b) Article 94(13) of that Order, in a case where the special procedure applies.

Continuity option 1: discharge of liabilities and winding up

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• (1) Where the trustees of a collective money purchase scheme are required, or decide, to pursue continuity option 1, they must—

• (a) quantify, in the case of each beneficiary, the amount that represents the value of the beneficiary's accrued rights to benefits under the scheme;

• (b) formulate a proposal for discharging the scheme's liability to each beneficiary in respect of those rights, in one of the ways set out in subsection (2);

• (c) notify each employer and relevant former employer, and each beneficiary, of the proposal and of such other matters as may be specified in regulations made by the Department.

• (2) The ways of discharging the scheme's liability referred to in subsection (1)(b) are—

• (a) transferring the value of the beneficiaries' accrued rights to benefits under the scheme to a collective money purchase scheme or to a Master Trust scheme;

• (b) transferring the value of those rights, in such circumstances as may be specified in regulations made by the Department, to a pension scheme that has characteristics specified in the regulations;

• (c) securing, in such circumstances as may be specified in regulations made by the Department, the payment of benefits by such other means (an “alternative payment mechanism”) as may be specified in the regulations.

• (3) A proposal under subsection (1)(b) may deal with the rights of different descriptions of beneficiaries in different ways.

• (4) Subsections (1)(b) and (2) have effect subject to—

• (a) Part 4ZA of the Pension Schemes (Northern Ireland) Act 1993 (transfers and contribution refunds);

• (b) provision made by regulations under subsection (6).

• (5) Notification under subsection (1)(c) must be given—

• (a) in the manner specified in regulations made by the Department, and

• (b) before the end of the period specified in the regulations.

• (6) The Department may by regulations make provision for the purposes of enabling continuity option 1 to be given effect, which may include—

• (a) provision about how continuity option 1 is to be pursued by the trustees of a collective money purchase scheme;

• (b) provision conferring rights on beneficiaries or employers;

• (c) provision imposing duties on employers or trustees;

• (d) provision conferring power on the Pensions Regulator to direct trustees to do things permitted or required by the regulations;

• (e) provision deeming a beneficiary the value of whose accrued rights are to be transferred to a scheme that is not a collective money purchase scheme or a Master Trust scheme to have entered into an agreement with a person of a description specified in the regulations.

• (7) Regulations under subsection (6) must include—

• (a) provision about how the quantification referred to in subsection (1)(a) is to be carried out (which may be different in relation to different descriptions of beneficiaries);

• (b) provision for securing that a person who has become a pensioner beneficiary (whether before or after the occurrence of the triggering event as a result of which the trustees are pursuing continuity option 1) receives a periodic income, at a rate or of an amount that is calculated by reference to the amount referred to in subsection (1)(a), until the time when the proposal under subsection (1)(b) is implemented or some other specified time;

• (c) provision about how rights conferred by the regulations may be exercised (including the time periods within which they may be exercised);

• (d) provision specifying requirements (which may include approval or authorisation by the Pensions Regulator in accordance with the regulations) to be met in the case of a pension scheme, or an alternative payment mechanism, by means of which it is proposed to discharge the collective money purchase scheme's liabilities to beneficiaries in one of the ways set out in subsection (2);

• (e) provision requiring those responsible for a pension scheme by means of which it is proposed to discharge the collective money purchase scheme's liabilities to beneficiaries (“the receiving scheme”) to provide the Pensions Regulator with a document setting out the level of administration charges that applied in relation to members of the receiving scheme, in the manner and as at the date specified or described in the regulations;

• (f) provision imposing duties on the trustees to notify all or a specified description of employers and beneficiaries of their rights under the regulations and of members' rights under Part 4ZA of the Pension Schemes (Northern Ireland) Act 1993;

• (g) provision about the winding up of the collective money purchase scheme in circumstances where the scheme's liabilities to beneficiaries are discharged.

• (8) In this section—

• “beneficiary”, in relation to the collective money purchase scheme, means—a member of the scheme, ora person who has survived a member of the scheme and has an entitlement to benefits, or a right to future benefits, under the scheme rules in respect of the member;

• “pensioner beneficiary”, in relation to the collective money purchase scheme, means a person who is entitled to the present payment of pension or other benefits under the scheme;

• “specified” means specified in regulations under subsection (6).

• (9) Article 10 of the Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22)) (civil penalties) applies to a person who fails to comply with a requirement imposed by this section.

• (10) Regulations under this section may provide for the application of Article 10 of the Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22)) to a person who fails to comply with a requirement imposed by the regulations.

• (11) Regulations under subsection (2) or (6) are subject to confirmatory procedure.

• (12) Regulations under subsection (1)(c) or (5) are subject to negative resolution.

Continuity option 2: resolving triggering event

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• (1) Where the trustees of a collective money purchase scheme decide to pursue continuity option 2, they must attempt to resolve the triggering event.

• (2) The trustees must notify the Pensions Regulator when they consider that the triggering event has been resolved.

• (3) The notification must—

• (a) set out how the trustees consider that the triggering event has been resolved;

• (b) be given before the end of the period specified in regulations made by the Department.

• (4) After receiving the notification, the Pensions Regulator must notify the trustees as to whether it is satisfied that the triggering event has been resolved.

• (5) The Pensions Regulator may not form the view that a triggering event (“the relevant event”) has been resolved unless it is satisfied that any other event within the triggering events table that has occurred in relation to the scheme since the occurrence of the relevant event has also been resolved.

• (6) Article 10 of the Pensions (Northern Ireland) Order 1995 (civil penalties) applies to a trustee who fails to comply with a requirement imposed by this section.

• (7) Regulations under subsection (3)(b) are subject to negative resolution.

Continuity option 3: conversion to closed scheme

89

• (1) This section applies where the trustees of a collective money purchase scheme decide to pursue continuity option 3.

• (2) The trustees must notify the Pensions Regulator when they consider that preparations for the conversion of the scheme into a closed scheme are complete.

• (3) The Department may by regulations require notification under subsection (2) to be given before the end of a period specified in the regulations.

• (4) If the Pensions Regulator is satisfied—

• (a) that preparations for the conversion of the scheme into a closed scheme are complete, and

• (b) that the conversion will resolve the triggering event giving rise to the decision to pursue continuity option 3, and any other event within the triggering events table that has subsequently occurred in relation to the collective money purchase scheme,

the Regulator must notify the trustees accordingly.

• (5) The conversion of the scheme into a closed scheme may be carried out only in accordance with the provisions of the scheme.

• (6) The scheme may not begin operating as a closed scheme until the trustees have received notification under subsection (4).

• (7) Where the trustees have pursued continuity option 3 they may not later reverse the closure of the scheme (either completely or to any extent).

• (8) Article 10 of the Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22)) (civil penalties) applies to a trustee who fails to comply with a requirement or restriction imposed by this section.

• (9) Regulations under subsection (3) are subject to negative resolution.

• (10) In this section “closed”, in relation to a collective money purchase scheme, means closed to new contributions or new members (or both).

The reference to closure of the scheme in subsection (7) is to be read accordingly.

Implementation strategy

90

• (1) If a triggering event occurs in relation to a collective money purchase scheme, the trustees must—

• (a) produce a document setting out how the interests of members of the scheme are to be protected following the occurrence of the event (an “implementation strategy”), and

• (b) submit it to the Pensions Regulator for approval before the end of a period specified in regulations made by the Department.

This is subject to subsections (2)(a) and (3)(a).

• (2) If an item 1, 2 or 3 triggering event occurs within the triggering event period for an earlier triggering event—

• (a) the trustees are not required to submit an implementation strategy in respect of the earlier triggering event;

• (b) any implementation strategy approved by the Pensions Regulator in respect of the earlier triggering event ceases to have effect when the later triggering event occurs.

• (3) In the case of an item 1 or 2 triggering event—

• (a) the trustees are required to submit an implementation strategy only if the decision to withdraw authorisation has become final (see section 86);

• (b) if it becomes clear that authorisation is not to be withdrawn, subsection (2) ceases to have effect on the date on which that becomes clear.

Subsections (3) to (5) of section 83 apply for the purposes of paragraph (b) above as they apply for the purposes of subsection (2)(c) of that section.

• (4) The Pensions Regulator may direct the trustees to comply with a requirement imposed by this section.

• (5) Article 10 of the Pensions (Northern Ireland) Order 1995 (civil penalties) applies to a person who fails to comply with a direction under subsection (4).

• (6) This section overrides any provision of the collective money purchase scheme, to the extent that there is a conflict.

• (7) Regulations under subsection (1)(b) are subject to negative resolution.

Approval of implementation strategy

91

• (1) The Pensions Regulator may approve an implementation strategy only if it is satisfied that the strategy is adequate.

• (2) Subsections (3) to (6) apply for the purposes of enabling the Pensions Regulator to decide whether it is satisfied that an implementation strategy for a collective money purchase scheme is adequate.

• (3) An implementation strategy must include information about the levels of administration charges in relation to members of the scheme.

• (4) The information must—

• (a) relate to the levels of administration charges as at the date specified or described in regulations made by the Department, and

• (b) be set out in the manner specified or described in the regulations.

• (5) An implementation strategy must include information about the following matters—

• (a) the continuity option that is to be pursued (see section 85);

• (b) where continuity option 1 (discharge of liabilities and winding up) is to be pursued—

• (i) the scheme or schemes to which it is proposed to transfer the value of accrued rights to benefits, or the alternative payment mechanism by which the payment of benefits is to be secured, if known;

• (ii) when the transfer is expected to take place, or (as the case may be) when the payment of benefits is expected to be secured;

• (c) where continuity option 2 (resolving the triggering event) is to be pursued, how it is proposed that the triggering event should be resolved;

• (d) where continuity option 3 (conversion to closed scheme) is to be pursued—

• (i) the way in which, the extent to which and the time by which it is proposed to close the scheme;

• (ii) how the scheme will continue to meet the authorisation criteria;

• (iii) any revisions that will be needed to the viability report and the continuity strategy (see sections 64 and 68).

• (6) An implementation strategy must—

• (a) include any other information specified or described in regulations made by the Department, and

• (b) be prepared in accordance with regulations made by the Department.

• (7) Regulations under this section are subject to negative resolution.

Trustees’ duties once implementation strategy approved

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• (1) When the Pensions Regulator has notified the trustees of a collective money purchase scheme that an implementation strategy relating to the scheme is approved, the trustees must—

• (a) pursue the continuity option identified in the strategy, and

• (b) take such other steps as are identified in the strategy in order to carry it out.

• (2) The Department may by regulations require the trustees of a collective money purchase scheme to make available an approved implementation strategy relating to the scheme, before the end of the period specified or described in the regulations, to employers or relevant former employers that are of a description specified in the regulations.

• (3) If an item 1, 2 or 3 triggering event occurs within the triggering event period for an earlier triggering event—

• (a) the trustees cease to be subject to the requirements of subsection (1) and regulations under subsection (2) in respect of an approved implementation strategy relating to the earlier triggering event, but

• (b) in the case of an item 1 or 2 triggering event, if it becomes clear that authorisation is not to be withdrawn, the trustees are again subject to those requirements from the date on which that becomes clear.

Subsections (3) to (5) of section 83 apply for the purposes of paragraph (b) above as they apply for the purposes of subsection (2)(c) of that section.

• (4) The Pensions Regulator may direct the trustees to comply with subsection (1), if they fail to do so.

• (5) Article 10 of the Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22)) (civil penalties) applies to a person who fails to comply with a direction under subsection (4).

• (6) To the extent that there is a conflict, this section overrides a provision of—

• (a) a collective money purchase scheme, or

• (b) a contract between the trustees of a collective money purchase scheme and a person providing services in relation to the scheme.

• (7) Regulations under subsection (2) are subject to negative resolution.

Prohibition on winding up except in accordance with continuity option 1

93

• (1) A person may wind up a collective money purchase scheme only in accordance with continuity option 1 (see section 87).

• (2) Subsection (1) overrides any provision of a collective money purchase scheme to the extent that there is a conflict.

• (3) Article 10 of the Pensions (Northern Ireland) Order 1995 (civil penalties) applies to a person who fails to comply with subsection (1).

Periodic reporting requirements

94

• (1) During a triggering event period for a collective money purchase scheme, the trustees must submit reports to the Pensions Regulator.

• (2) The first report must be submitted before the end of a period specified in regulations made by the Department.

• (3) Subsequent reports must be submitted at intervals specified by the Pensions Regulator.

• (4) The reports must—

• (a) report on progress in carrying out the implementation strategy,

• (b) record events or decisions of a description specified in regulations made by the Department,

• (c) contain such other information as is specified in regulations made by the Department, and

• (d) be made in the manner and form specified by the Pensions Regulator.

• (5) Article 10 of the Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22)) (civil penalties) applies to a person who fails to comply with a requirement imposed by this section.

• (6) Regulations under this section are subject to negative resolution.

Pause orders

95

• (1) This section applies during a triggering event period for a collective money purchase scheme.

• (2) The Pensions Regulator may make a pause order in relation to the scheme if either of the following two conditions is met.

• (3) Condition 1 is that the Pensions Regulator is satisfied that making a pause order will help the trustees to carry out the implementation strategy.

• (4) Condition 2 is that the Pensions Regulator is satisfied that—

• (a) there is, or is likely to be if a pause order is not made, an immediate risk to the interests of members of the scheme or the assets of the scheme, and

• (b) it is necessary to make a pause order to protect the interests of the generality of the members of the scheme.

• (5) A pause order is an order that during the period for which it has effect one or more of the following directions has effect—

• (a) a direction that no new members (or no new members of a specified description) are to be admitted to the scheme;

• (b) a direction that no further payments (or no further payments of a specified description) are to be made towards the scheme—

• (i) by or on behalf of employers or relevant former employers (or employers or relevant former employers of a specified description), or

• (ii) by or in respect of members (or members of a specified description);

• (c) a direction that an amount (or specified amount) which—

• (i) corresponds to a payment that would be due to be made towards the scheme in respect of a member but for a direction under paragraph (b), and

• (ii) has been deducted from a payment of earnings in respect of an employment,

is to be repaid to the member in question by the employer;

• (d) a direction that no benefits (or no benefits of a specified description) are to be paid to or in respect of members (or members of a specified description) under the scheme rules;

• (e) a direction that—

• (i) no transfers (or no transfers of a specified description) of or in respect of a member's rights under the scheme rules are to be made from the scheme,

• (ii) no transfer payments (or no transfer payments of a specified description) in respect of a member's rights under the scheme rules are to be made from the scheme, or

• (iii) no other steps (or no other steps of a specified description) are to be taken to discharge a liability of the scheme to or in respect of a member of the scheme in respect of pensions or other benefits.

• (6) In subsection (5)(b)—

• (a) a reference to payments does not include payments due to be made before the order takes effect, and

• (b) a reference to payments towards a scheme includes payments in respect of pension credits where the person entitled to the credit is a member of the scheme.

• (7) A direction under subsection (5)(e) may provide that—

• (a) no transfers of or in respect of a member's rights under the scheme rules, or no such transfers of a specified description, may be made from the scheme, or

• (b) no transfer payments in respect of such rights, or no such transfer payments of a specified description, may be made from the scheme,

unless the amounts paid out from the scheme in respect of the transfers or transfer payments are determined in a specified manner and the transfers or transfer payments satisfy such other conditions as may be specified.

• (8) A pause order may also require the trustees of the scheme to obtain an actuarial valuation within a specified period.

• (9) A pause order containing such a requirement must specify—

• (a) the date by reference to which the matters to be set out in the valuation must be determined;

• (b) the information and statements that the valuation must contain;

• (c) any other requirements that the valuation must satisfy.

• (10) Schedule 5 makes further provision about pause orders.

• (11) In this section—

• “earnings” has the meaning given in section 176(1) of the Pension Schemes (Northern Ireland) Act 1993;

• “pension credit” means a credit under Article 26(1)(b) of the Welfare Reform and Pensions (Northern Ireland) Order 1999 (S.I. 1999/3147 (N.I. 11)) or section 29(1)(b) of the Welfare Reform and Pensions Act 1999;

• “specified” means specified in the pause order.

Prohibition on increasing charges etc during triggering event period

96

• (1) During a triggering event period for a collective money purchase scheme, the trustees must not—

• (a) impose administration charges on or in respect of members at levels above those set out in the implementation strategy,

• (b) impose new administration charges on or in respect of members, or

• (c) impose administration charges on or in respect of a member in consequence of the member leaving, or deciding to leave, the scheme during that period.

• (2) The trustees of a receiving scheme that is a collective money purchase scheme or a Master Trust scheme must not—

• (a) impose administration charges on or in respect of members at levels above those set out in the document provided to the Pensions Regulator by virtue of regulations under section 87(7)(e), or

• (b) impose new administration charges on or in respect of members,

for the purposes of meeting any of the costs mentioned in subsection (4).

• (3) The Department may by regulations—

• (a) provide that subsection (1) or (2) does not apply in relation to administration charges specified or described in the regulations;

• (b) make provision about how levels of administration charges are to be calculated for the purposes of this section.

• (4) The costs referred to in subsection (2) are costs for which a receiving scheme is liable—

• (a) which were incurred by the transferring scheme, or

• (b) which relate directly to the transfer of the value of accrued rights to benefits under the transferring scheme.

• (5) To the extent that there is a conflict, this section overrides a provision of—

• (a) a collective money purchase scheme,

• (b) a Master Trust scheme,

• (c) a contract between the trustees of a collective money purchase scheme and a person providing services in relation to the scheme, or

• (d) a Master Trust scheme contract within the meaning of section 39(1) of the Pension Schemes Act 2017 or any corresponding statutory provision.

• (6) The Department may by regulations apply some or all of the provisions of this section to a receiving scheme that has characteristics specified in regulations under section 87(2)(b).

• (7) Article 10 of the Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22)) (civil penalties) applies to a trustee who fails to comply with this section.

• (8) In this section—

• “receiving scheme” means a pension scheme that—receives a transfer from a transferring scheme of the value of accrued rights to benefits under that scheme during a triggering event period for that scheme, andwas proposed by the trustees of that transferring scheme, or by employers in relation to that scheme, as a scheme to which the value of those rights should be transferred;

• “transferring scheme” means a collective money purchase scheme the trustees of which, following a triggering event, are pursuing continuity option 1.

• (9) Regulations under subsection (3)(a) or (6), and the first regulations under subsection (3)(b), are subject to confirmatory procedure.

• (10) Subsequent regulations under subsection (3)(b) are subject to negative resolution.

Publication of information

Publication of information

97

• (1) The Department may by regulations require the trustees of a collective money purchase scheme to publish information relating to the scheme that is specified or described in the regulations.

• (2) Regulations under subsection (1) may, among other things—

• (a) require the trustees to publish a document specified or described in the regulations;

• (b) require information or a document to be made available free of charge;

• (c) require information or a document to be provided to a person in a form or by means specified or described in the regulations;

• (d) require or permit information specified or described in the regulations to be excluded from a document when it is published in accordance with the regulations.

• (3) In complying with a requirement imposed by regulations under subsection (1) a trustee must have regard to any guidance prepared from time to time by the Department.

• (4) Article 10 of the Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22)) (civil penalties) applies to a trustee who fails to take all reasonable steps to comply with a requirement imposed by regulations under this section.

• (5) Regulations under subsection (1) are subject to negative resolution.

Powers to make further provision

Powers to extend definition of qualifying schemes

98

• (1) The Department may by regulations remove the exclusion of any of the following from the definition of “qualifying scheme” in section 54—

• (a) pension schemes not established solely by one or more persons to whom section 1(2)(a) (employer) of the Pension Schemes (Northern Ireland) Act 1993 applied when the scheme was established;

• (b) pension schemes used, or intended to be used, by two or more employers some or all of which are not connected with each other.

• (2) The Department may by regulations make further provision about collective money purchase schemes that could not be qualifying schemes, or sections of qualifying schemes, but for regulations under subsection (1) (“relevant schemes”), including—

• (a) provision about the authorisation of relevant schemes by the Pensions Regulator;

• (b) provision about triggering events and continuity options;

• (c) provision about administration charges during triggering event periods.

• (3) Regulations under subsection (2) making provision about relevant schemes used, or intended to be used, by two or more employers some or all of which are not connected with each other may among other things—

• (a) make provision corresponding or similar to provision made by or under Part 1 of the Pension Schemes Act 2017;

• (b) disapply, in relation to such schemes, any statutory provision corresponding to anything in that Part.

• (4) The provision that may be made under subsection (1) or (2) may be made by—

• (a) modifying or amending this Part;

• (b) making consequential modifications or amendments of any other statutory provision.

• (5) Regulations under this section are subject to confirmatory procedure.

Supplementary

Minor and consequential amendments

99

Schedule 6 makes minor and consequential amendments relating to this Part.

Interpretation of Part 2

100

• (1) In this Part—

• “administration charge” has the same meaning as in paragraph 1 of Schedule 18 to the Pensions Act (Northern Ireland) 2015 (c. 5 (N.I.));

• “authorisation” means authorisation under section 60 or by virtue of regulations under section 56(2) (and related expressions are to be read accordingly);

• “authorisation criteria” has the meaning given in section 60(3);

• “the data protection legislation” has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act);

• “the Department” means the Department for Communities in Northern Ireland;

• “employer”, in relation to an occupational pension scheme, means a person who employs or engages persons who are, or are entitled to become, members of the scheme;

• “implementation strategy” has the meaning given in section 90;

• “insolvency event” has the meaning given in Article 105 of the Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1));

• “Master Trust scheme” means a Master Trust scheme within the meaning of the Pension Schemes Act 2017 or any corresponding statutory provision;

• “member” has the meaning given in Article 121(1) of the Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22)) (read with regulations made under Article 122(4) of that Order);

• “occupational pension scheme” has the same meaning as in the Pension Schemes (Northern Ireland) Act 1993 (see section 1(1) of that Act);

• “pension scheme” has the meaning given in section 1(5) of the Pension Schemes (Northern Ireland) Act 1993;

• “the scheme actuary”, in relation to a pension scheme, means the person appointed under Article 47(1)(b) of the Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22)) (professional advisers) in relation to the scheme;

• “scheme rules” has the meaning given in Article 2(3) and (4) of the Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1));

• “statutory provision” has the meaning given in section 1(f) of the Interpretation Act (Northern Ireland) 1954 (c. 33 (N.I.));

• “triggering event” has the meaning given in section 82.

• (2) For the purposes of this Part, an employer (“A”) is connected with another employer (“B”)—

• (a) where A is, or has been, a group undertaking in relation to B within the meaning of section 1161(5) of the Companies Act 2006, or

• (b) in circumstances specified in regulations made by the Department.

• (3) This Part applies to a qualifying scheme—

• (a) which provides both qualifying benefits and other benefits, and

• (b) for which there is no power to wind up the scheme to the extent only that it provides qualifying benefits,

as if references to winding up the scheme, or to the scheme being wound up, were to ceasing to operate the scheme, or the scheme ceasing to operate, to the extent that it provides qualifying benefits.

• (4) Regulations made by the Department may make provision to the effect that, for the purposes of any specified provisions of this Part, a reference in this Part to a collective money purchase scheme includes a scheme that—

• (a) is in the process of being wound up, and

• (b) was a collective money purchase scheme immediately before the beginning of that process.

“Specified” here means specified in the regulations.

• (5) Regulations under subsection (2) or (4) are subject to confirmatory procedure.

Index of defined expressions

101

The Table below lists provisions which define or otherwise explain terms defined for this Part of this Act.

Regulations

102

• (1) A power of the Department to make regulations under this Part is exercisable by statutory rule for the purposes of the Statutory Rules (Northern Ireland) Order 1979 (S.I. 1979/1573 (N.I. 12)).

• (2) A power to make regulations under this Part may be used—

• (a) to make different provision for different purposes;

• (b) to make provision in relation to all or only some of the purposes for which it may be used.

• (3) Regulations under this Part may—

• (a) confer a discretion on a person;

• (b) make consequential, supplementary or incidental provision;

• (c) make transitional, transitory or saving provision.

• (4) Where regulations under this Part are subject to “negative resolution”, they are subject to negative resolution within the meaning given in section 41(6) of the Interpretation Act (Northern Ireland) 1954 (c. 33 (N.I.)).

• (5) Where regulations under this Part are subject to “confirmatory procedure”—

• (a) they must be laid before the Northern Ireland Assembly after being made, and

• (b) they take effect on such date as may be specified in the regulations, but (without prejudice to the validity of anything done under the regulations or to the making of new regulations) cease to have effect on the expiration of the period of six months beginning with that date unless at some time before the expiration of that period the regulations are approved by resolution of the Northern Ireland Assembly.

• (6) Section 41(3) of the Interpretation Act (Northern Ireland) 1954 applies in relation to the laying of regulations under this Part as it applies in relation to the laying of a statutory document under an enactment.

• (7) Any provision that may be made by regulations under this Part subject to negative resolution may be made by regulations subject to confirmatory procedure.

PART 3 — The Pensions Regulator

Contribution notices where avoidance of employer debt etc

Grounds for issuing a section 38 contribution notice

103

• (1) The Pensions Act 2004 is amended as follows.

• (2) In section 38 (contribution notices where avoidance of employer debt)—

• (a) in subsection (5)(a)—

• (i) after “test” insert “ , the employer insolvency test or the employer resources test ”;

• (ii) for “section 38A)” substitute “ sections 38A, 38C and 38E) ”;

• (b) in subsection (12)(c), after “test” insert “ , the employer insolvency test or the employer resources test ”.

• (3) After section 38B insert—

(38C) (1) For the purposes of section 38 the employer insolvency test is met in relation to an act or failure to act if the Regulator is of the opinion that— (a) immediately after the relevant time, the value of the assets of the scheme was less than the amount of the liabilities of the scheme, and (b) if a debt under section 75(4) of the Pensions Act 1995 (deficiencies in scheme assets: employer insolvency etc) had fallen due from the employer to the scheme immediately after the relevant time, the act or failure would have materially reduced the amount of the debt likely to be recovered by the scheme. (2) For the purposes of subsection (1)— (a) the value of the assets of the scheme immediately after the relevant time is the value which the Regulator estimates to be their value, (b) the amount of the liabilities of the scheme immediately after the relevant time is the amount which the Regulator estimates to be the amount of those liabilities, and (c) the amount of the debt is the amount which the Regulator estimates to be the amount of the debt under section 75(4) of the Pensions Act 1995 that would have fallen due immediately after the relevant time. (3) When estimating the value and the amounts referred to in subsection (2), the Regulator must take into account how assets and liabilities, and their value or amount, are determined and calculated for the purposes of section 75(4) of the Pensions Act 1995. (4) When estimating— (a) the value of the assets of the scheme immediately after the relevant time, and (b) the amount of the debt under section 75(4) of the Pensions Act 1995 falling due immediately after the relevant time, the Regulator must disregard the amount of any debt due immediately after the relevant time from the employer under section 75 of the Pensions Act 1995. (5) In this section “the relevant time” means— (a) in the case of an act, the time of the act, or (b) in the case of a failure to act— (i) the time when the failure occurred, or (ii) where the failure continued for a period of time, the time which the Regulator determines and which falls within that period; and, in the case of acts or failures to act forming part of a series, any reference in this subsection to an act or failure to act is a reference to the last of the acts or failures in that series. (38D) (1) This section applies where— (a) a warning notice is given to any person (“P”) in respect of a contribution notice under section 38, and (b) the contribution notice under consideration would be issued wholly or partly by reference to the Regulator's opinion that the employer insolvency test is met in relation to an act or deliberate failure to act to which P was a party. (2) If the Regulator is satisfied that P has shown that— (a) conditions A and C are met, and (b) where applicable, condition B is met, the Regulator must not issue the contribution notice by reference to its being of the opinion mentioned in subsection (1)(b). (3) If the Regulator is satisfied that P or another person has shown that condition D is met, the Regulator must not issue the contribution notice by reference to its being of the opinion mentioned in subsection (1)(b). (4) Condition A is that, before becoming a party to the act or failure, P gave due consideration to the extent to which, if a debt under section 75(4) of the Pensions Act 1995 were to fall due from the employer to the scheme— (a) immediately after the act or failure, or (b) where the failure might continue for a period of time, at any time within that period, the act or failure might materially reduce the amount of the debt likely to be recovered by the scheme. (5) Condition B is that, in any case where as a result of that consideration P considered that the act or failure might have such an effect, P took all reasonable steps to eliminate or minimise the potential for the act or failure to have such an effect. (6) Condition C is that, having regard to all relevant circumstances prevailing at the time of the act or at the time when the failure to act first occurred, it was reasonable for P to conclude that, if a debt under section 75(4) of the Pensions Act 1995 were to fall due from the employer to the scheme— (a) immediately after the act or failure, or (b) where the failure might continue for a period of time, at any time within that period, the act or failure would not materially reduce the amount of the debt likely to be recovered by the scheme. (7) Condition D is that, immediately after the relevant time, the value of the assets of the scheme equalled or was more than the amount at that time of the liabilities of the scheme. (8) P is to be regarded as giving the consideration mentioned in condition A only if P has made the enquiries, and done the other acts, that a reasonably diligent person would have made or done in the circumstances. (9) For the purposes of condition C the reference to the circumstances mentioned in that condition is a reference to those circumstances of which P was aware, or ought reasonably to have been aware, at the time of the act or the time when the failure to act first occurred (including acts or failures to act which have occurred before that time and P's expectation at that time of other acts or failures to act occurring). (10) For the purposes of conditions A, C and D the amount of any debt due at the time in question from the employer under section 75 of the Pensions Act 1995 is to be disregarded. (11) In the case of acts or failures to act forming part of a series, P is to be regarded as having shown the matters mentioned in subsection (2) if P shows in the case of each of the acts or failures in the series that— (a) conditions A and C are met, and (where applicable) condition B is met, in relation to the act or failure, or (b) the act or failure was one of a number of acts or failures (a “group” of acts or failures) selected by P in relation to which the following matters are shown. (12) The matters to be shown are that— (a) before becoming a party to the first of the acts or failures in the group, condition A is met in relation to the effect of the acts or failures in the group taken together, (b) condition B is (where applicable) met in relation to that effect, and (c) condition C is then met in relation to each of the acts or failures in the group (determined at the time at which each act or failure concerned occurred or first occurred). (13) If at any time P considers that condition C will not be met in relation to any particular act or failure in the group— (a) the previous acts or failures in the group are to be regarded as a separate group for the purposes of subsection (11), and (b) P may then select another group consisting of the particular act or failure concerned, and any subsequent act or failure, in relation to which P shows the matters mentioned in subsection (12). Nothing in paragraph (b) is to be read as preventing P from showing the matters mentioned in subsection (11)(a). (14) If— (a) P is unable to show in the case of each of the acts or failures in the series that the matters set out in subsection (11)(a) or (b) are met, but (b) does show in the case of some of them that those matters are met, the acts or failures within paragraph (b) are not to count for the purposes of section 38C as acts or failures to act in the series. (15) In this section— (a) “the relevant time” has the meaning given by section 38C; (b) “a warning notice” means a notice given as mentioned in section 96(2)(a); (c) a reference to a party to an act or failure to act includes a reference to a person who knowingly assists in the act or failure.

• (4) After section 38D (inserted by subsection (3)) insert—

(38E) (1) For the purposes of section 38 the employer resources test is met in relation to an act or failure to act if the Regulator is of the opinion that— (a) the act or failure reduced the value of the resources of the employer, and (b) that reduction was a material reduction relative to the estimated section 75 debt in relation to the scheme. (2) For the purposes of this section— (a) what constitutes the resources of the employer is to be determined in accordance with regulations; (b) the value of the resources of the employer is to be determined, calculated and verified in a prescribed manner. (3) In this section the “estimated section 75 debt” means the amount which the Regulator estimates to be the amount of the debt which would become due from the employer to the trustees or managers of the scheme under section 75 of the Pensions Act 1995 (deficiencies in the scheme assets) if— (a) section 75(2) applied, and (b) the time designated by the trustees or managers of the scheme for the purposes of section 75(2) were the relevant time. (4) When calculating the estimated section 75 debt under subsection (3), the amount of any debt due at the relevant time from the employer under section 75 of the Pensions Act 1995 is to be disregarded. (5) In this section “the relevant time” means— (a) in a case where the act or failure to act forms part of a series of acts or failures to act, the time immediately before the first of the acts occurred or the first of the failures to act first occurred; (b) in any other case, the time immediately before the act occurred or the failure to act first occurred. (38F) (1) This section applies where— (a) a warning notice is given to any person (“P”) in respect of a contribution notice under section 38, and (b) the contribution notice under consideration would be issued wholly or partly by reference to the Regulator's opinion that the employer resources test is met in relation to an act or deliberate failure to act to which P was a party. (2) If the Regulator is satisfied that P has shown that— (a) conditions A and C are met, and (b) where applicable, condition B is met, the Regulator must not issue the contribution notice by reference to its being of the opinion mentioned in subsection (1)(b). (3) Condition A is that, before becoming a party to the act or failure, P gave due consideration to the extent to which the act or failure might reduce the value of the resources of the employer relative to the estimated section 75 debt in relation to the scheme. (4) Condition B is that, in any case where as a result of that consideration P considered that the act or failure might have such an effect, P took all reasonable steps to eliminate or minimise the potential for the act or failure to have such an effect. (5) Condition C is that, having regard to all relevant circumstances prevailing at the time of the act or at the time when the failure to act first occurred, it was reasonable for P to conclude that the act or failure would not bring about a reduction in the value of the resources of the employer that would be a material reduction relative to the estimated section 75 debt in relation to the scheme. (6) P is to be regarded as giving the consideration mentioned in condition A only if P has made the enquiries, and done the other acts, that a reasonably diligent person would have made or done in the circumstances. (7) For the purposes of condition C the reference to the circumstances mentioned in that condition is a reference to those circumstances of which P was aware, or ought reasonably to have been aware, at the time of the act or the time when the failure to act first occurred (including acts or failures to act which have occurred before that time and P's expectation at that time of other acts or failures to act occurring). (8) For the purposes of conditions A and C— (a) the “estimated section 75 debt” means the amount which is a reasonable estimate of the amount of the debt which would become due from the employer to the trustees or managers of the scheme under section 75 of the Pensions Act 1995 (deficiencies in the scheme assets) if— (i) section 75(2) applied, and (ii) the time designated by the trustees or managers of the scheme for the purposes of section 75(2) were the time immediately before the act occurred or the failure to act first occurred; (b) the amount of any debt due at the time in question from the employer under section 75 of the Pensions Act 1995 is to be disregarded. (9) In the case of acts or failures to act forming part of a series, P is to be regarded as having shown the matters mentioned in subsection (2) if P shows in the case of each of the acts or failures in the series that— (a) conditions A and C are met, and (where applicable) condition B is met, in relation to the act or failure, or (b) the act or failure was one of a number of acts or failures (a “group” of acts or failures) selected by P in relation to which the following matters are shown. (10) The matters to be shown are that— (a) before becoming a party to the first of the acts or failures in the group, condition A is met in relation to the effect of the acts or failures in the group taken together, (b) condition B is (where applicable) met in relation to that effect, and (c) condition C is then met in relation to each of the acts or failures in the group (determined at the time at which each act or failure concerned occurred or first occurred). (11) If at any time P considers that condition C will not be met in relation to any particular act or failure in the group— (a) the previous acts or failures in the group are to be regarded as a separate group for the purposes of subsection (9), and (b) P may then select another group consisting of the particular act or failure concerned, and any subsequent act or failure, in relation to which P shows the matters mentioned in subsection (10). Nothing in paragraph (b) is to be read as preventing P from showing the matters mentioned in subsection (9)(a). (12) If— (a) P is unable to show in the case of each of the acts or failures in the series that the matters set out in subsection (9)(a) or (b) are met, but (b) does show in the case of some of them that those matters are met, the acts or failures within paragraph (b) are not to count for the purposes of section 38E as acts or failures to act in the series. (13) In this section— (a) section 38E(2) (the resources of the employer and their value) has effect for the purpose of this section as it has effect for the purposes of section 38E; (b) “a warning notice” means a notice given as mentioned in section 96(2)(a); (c) a reference to a party to an act or failure to act includes a reference to a person who knowingly assists in the act or failure.

Reasonableness of issuing a contribution notice

104

• (1) Section 38 of the Pensions Act 2004 (contribution notices where avoidance of employer debt) is amended as follows.

• (2) In subsection (7) (matters that may be relevant to imposing liability), after paragraph (d) insert—

(da) if the act or failure to act was a notifiable event for the purposes of section 69A (duty to give notices and statements to the Regulator in respect of certain events), any failure by the person to comply with any obligation imposed on the person by section 69A,

.

• (3) In subsection (7), after paragraph (eb) insert—

(ec) the effect of the act or failure to act on the value of the assets or liabilities of the scheme or any relevant transferee scheme,

.

• (4) After subsection (7A) insert—

(7B) In subsection (7)(ec) “relevant transferee scheme” and the reference to the assets or liabilities of any relevant transferee scheme have the same meaning as in section 38A.

Determination of sum specified in a contribution notice

105

• (1) Section 39 of the Pensions Act 2004 (the sum specified in a section 38 contribution notice) is amended as follows.

• (2) For subsection (4) substitute—

(4) For the purposes of this section “the relevant time” means the end of the scheme year which ended most recently before the day on which the Regulator gives a determination notice under section 96(2)(d) in respect of an intended contribution notice under section 38.

• (3) Omit subsection (4A).

Sanctions for failure to comply with a contribution notice

106

• (1) The Pensions Act 2004 is amended as follows.

• (2) In section 40 (content and effect of a section 38 contribution notice)—

• (a) after subsection (2) insert—

(2A) Without prejudice to subsections (3) and (7), the contribution notice must also specify a date for the purposes of sections 42A(2) and 42B(2) (sanctions for failure to comply with a contribution notice).

;

• (b) in subsection (9), after paragraph (b) (and before the “and”) insert—

(ba) specifies the same date for the purposes of sections 42A(2) and 42B(2) as is specified in P's contribution notice,

.

• (3) In section 41 (section 38 contribution notice: relationship with employer debt)—

• (a) after subsection (8) insert—

(8A) An application under subsection (7) may not be made after— (a) the date specified under section 40(2A) for the purposes of sections 42A(2) and 42B(2) (sanctions for failure to comply with a contribution notice), or (b) if a different date has effect instead of that date (see subsections (10A) and (11B)), that different date.

;

• (b) after subsection (10) insert—

(10A) Where an application under subsection (7) is made to the Regulator, the Regulator may, if it is of the opinion that it is appropriate to do so— (a) change the date that has effect for the purposes of sections 42A(2) and 42B(2) (whether specified in the contribution notice or an earlier revised contribution notice), and (b) specify the revised date in the revised contribution notice issued under subsection (9)(b) or, if the Regulator does not issue a revised contribution notice under subsection (9)(b), issue a revised contribution notice specifying the revised date.

;

• (c) after subsection (11) insert—

(11A) Subsection (11B) applies where— (a) P's contribution notice specifies that P is jointly and severally liable for the debt with other persons, and (b) the Regulator issues a revised contribution notice to P under subsection (9)(b) or (10A)(b) specifying a revised date for the purposes of sections 42A(2) and 42B(2). (11B) Where this subsection applies, the Regulator must— (a) change the date that has effect for the purposes of sections 42A(2) and 42B(2) in the case of the contribution notices or revised contribution notices issued in respect of the debt to those other persons, and (b) specify the revised date in the revised contribution notices issued to those other persons under subsection (11) or, if the Regulator does not issue revised contribution notices under subsection (11), issue revised contribution notices to those other persons specifying the revised date.

• (4) After section 42 insert—

(42A) (1) This section applies where a contribution notice is issued to a person under section 38. (2) If the person, without reasonable excuse, fails to pay the debt due by virtue of the contribution notice to— (a) the trustees or managers of the scheme, or (b) the Board of the Pension Protection Fund (as the case may be), before the date specified in the contribution notice for the purposes of this subsection (see section 40(2A)), the person is guilty of an offence. (3) A person guilty of an offence under subsection (2) is liable— (a) on summary conviction in England and Wales, to a fine; (b) on summary conviction in Scotland, to a fine not exceeding level 5 on the standard scale. (4) Proceedings for an offence under subsection (2) may not be instituted if an application under section 41(7) has been made— (a) in relation to the contribution notice, or (b) in relation to a contribution notice which is a corresponding contribution notice for the purposes of section 40(8), and the application has not been determined, withdrawn or abandoned. (5) Proceedings for an offence under subsection (2) may be instituted in England and Wales only— (a) by the Regulator or the Secretary of State, or (b) by or with the consent of the Director of Public Prosecutions.

• (5) After section 42A (inserted by subsection (4)) insert—